PROJECT REPORT FOR DAIRY FARM WITH 20 CB HF/CB JERSEY COWS

MODEL APICOL PROJECT

This model project report for dairy farm with 20 cows is based on the following assumption:

1. Freshly calved crossbred Jersey/HF cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months.2. Availability of 4 acres of land is prerequisite for the project4.Fodder cultivation considered in 4-acre land, Two crops considered per year.5. Cow dung produced will be utilized as Manure for fodder cultivation.6. Cost of rearing calves is not considered as it will be nullified by their sale value 7. In case of death cow, the new cow will be purchased from insurance claim money8. The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines. Avail Bank loan and subsidy– Subsidy limit under MKUY is 40% of the fixed capital (excluding the cost of the land) subject to a limit of 50.00 lakh for general male category. Subsidy is 50% of the fixed capital limited to 50.00 lakh for SC/ST/Women/Graduates of Agriculture and Allied Disciplines for this type project. Farmer/entrepreneur can apply through GO Sugam Portal. Net annual profit from the project should be more than 2 Lakh for individual & more than one lakh for SHG groups.

Housing for cows –Floor –Pucca, strong concrete cemented, impervious to moisture, and have slope 1 in 60 towards the gutter. Plinth should be 2ft. higher than ground. Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks. Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be hangover 3ft beyond the wall to prevent rainwater from entering cow shade. The roof should be of asbestos, cement asbestos, or tile. the thatched roof can replace asbestos in low-cost housing.

ITEMS	LENGTH IN METER
MANGER	0.6M
STANDING PLACE	1.5 M
GUTTER	0.4 M
FEEDING PASSAGE	1.2 M ON BOTH SIDE
MILKING PLACE	1.2 M

Total lactation day and dry day for 20 cows dairy farm is given in lactation chart for 20 cows

Details of techno economic parameters of this project is given in Parameters 20 cows

Daily feed requirement and feed chart for this project is given in DAILY FEEDING AND COST CHART FOR DAIRY COWS

ECONOMICS OF DAIRY FARMING WITH 20 HF/CB JERSEY COWS

	Project cost and bank loan	Cost. In Rs.
1.	Capital cost
2.	Cow shed for 20 cows 60sq.ft/cow @300/sqft	360000
3.	Calf pen for 20 calves 20 sq.ft./calf @300/sq.ft.	120000
4.	One room 10” x 10” for keeping implements. And feed @400/sq.ft	40000
5.	Office room of 10” x 10”@ 500/sqft	40000
6.	Electric connection and electrical installation to the farm	3000
7.	Bore well with pump set	90000
8.	Cost of 1 Fodder Chaff Cutter with Motor	25000
9.	Cost of milking machine with two can cluster	50000
10.	Milk Cans 40 Liter 10 Nos	20000
11.	Cost of one refrigerator for storage of medicines vaccines with voltage stabilizer	15000
12.	Cost of 20 CB jersey / CB HF Cows with minimum average 12 liter milk yield /day including transportation and insurance @ 40000/cow	800000
	Total	1563000
Recurring cost to be capitalized
I.	Cost of feed for first batch of 10 cows for one month as per feed chart	46500
II.	Cost of fodder cultivation in 4 acres of land For one season	24000
III.	Salary of one labourer for one month	6000
IV.	Cost of medicine vaccine, electricity for the first month for first batch of 10 cows & Misc expenditure for one month	4500
V.	Contingency	6000
	Total recurring expenditure	87000
	TOTAL PROJECT COST	1650000
	Margin Money @15% of the project cost	247500
	Bank loan @ 85% of project cost	Rs. 1402500

CASH FLOW ANALYSIS.	Year
CASH FLOW ANALYSIS.	1	2	3	4	5	6	7
Feeding during lactation period vide yearly lactation days and feed cost as per chart	705250	883500	891250	891250	883500	852500	852500
Feeding during dry period vide dry days and feed cost as per feed chart enclosed	54000	96000	93000	93000	96000	108000	54000
Medicine vaccine veterinary aid	30000	30000	30000	30000	30000	30000	30000
Insurance @5% of animal cost /year	20000	20000	20000	20000	20000	20000	20000
Cost of fodder cultivation For two session	48000	48000	48000	48000	48000	48000	48000
Labour salary	72000	72000	72000	72000	72000	72000	72000
other miscellaneous expenditure including electricity	30000	30000	30000	30000	30000	30000	30000
Total	959250	1179500	1184250	1184250	1179500	1160500	1106500
INCOME
Sale of milk @Rs.32/liter during lactation days with average milk 12 liter yield /cow day	1747200	2188800	2208000	2208000	2188800	2112000	1747200
Manure will be utilized in own farm
Value of closing stock of 20 cows(Depreciation on animal cost @15%/year)							-0
Value of building(Depreciation on building@10%/year)							168000
Value of equipment (Depreciation on equipment @15%/year)							0
Total income	1747200	2188800	2208000	2208000	2188800	2112000	1915200
Gross profit	787950	1009300	1023750	1023750	1009300	951500	808700

Calculation of BCR & IRR

	1	2	3	4	5	6	7
Capital Costs	1565000
Recurring Cost	959250	1179500	1184250	1184250	1179500	1160500	1106500
Total Costs	2524250	1179500	1184250	1184250	1179500	1160500	1106500
Benefit	1747200	2188800	2208000	2208000	2188800	2112000	1915200
Net Benefit	-777050	1009300	1023750	1023750	1009300	951500	808700

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW) @ 15% DF	2563125.25	Should be +ve
2	Benefit Cost Ratio(BCR)	1.42:1	>1
3	Internal Rate of return (IRR)	53.11	>15%
4	DSCR	3.16	>1.5

Repayment of loan– Repayment of loan will start six month after the availing loan and will be completed within six to seven years. Details of loan repayment is given in Loan repayment schedule for 20 cows.

DISCLAIMER:-The views expressed in this model project are advisory in nature. This website assumes no financial liability for anyone using this project report for any purpose.